NOTE 4: SEGMENT INFORMATION (Tables)

The following is information about reported segment revenues, income (losses) from continuing operations, and total assets as of and for the periods ended June 30, 2017 and 2016:

Training and

Simulation

Division

Power Systems

Division

Corporate

Expenses

Total

Company

Six months ended June 30, 2017

Revenues from outside customers

$

20,543,003

$

23,253,135

$

–

$

43,796,138

Depreciation, amortization and impairment expenses(1)

(548,125

)

(1,531,811

)

(2,272

)

(2,082,208

)

Direct expenses(2)

(18,050,604

)

(22,155,430

)

(1,839,027

)

(42,045,061

)

Segment operating income (loss)

$

1,944,274

$

(434,106

)

$

(1,841,299

)

$

(331,131

)

Financial income (expense)

(37,270

)

(177,748

)

(334,026

)

(549,044

)

Income tax expense

(70,000

)

44,512

(457,272

)

(482,760

)

Income (loss) from continuing operations

$

1,837,004

$

(567,342

)

$

(2,632,597

)

$

(1,362,935

)

Segment assets(3) (4)

$

45,133,954

$

59,898,807

$

3,288,523

$

108,321,284

Additions to long-lived assets

$

2,356,724

$

926,946

$

–

$

3,283,670

Six months ended June 30, 2016

Revenues from outside customers

$

24,647,137

$

22,539,221

$

–

$

47,186,358

Depreciation, amortization and impairment expenses(1)

(549,027

)

(1,775,382

)

(10,257

)

(2,334,666

)

Direct expenses(2)

(20,422,716

)

(20,765,715

)

(3,490,364

)

(44,678,795

)

Segment operating income (loss)

$

3,675,394

$

(1,876

)

$

(3,500,621

)

$

172,897

Financial income (expense)

(14,811

)

(35,027

)

(492,016

)

(541,854

)

Income tax expense

(93,630

)

(109,361

)

(379,289

)

(582,280

)

Income (loss) from continuing operations

$

3,566,953

$

(146,264

)

$

(4,371,926

)

$

(951,237

)

Segment assets(3) (4)

$

43,752,823

$

59,158,134

$

8,450,523

$

111,361,480

Additions to long-lived assets

$

165,066

$

666,329

$

–

$

831,395

Three months ended June 30, 2017

Revenues from outside customers

$

10,191,814

$

11,256,879

$

–

$

21,448,693

Depreciation, amortization and impairment expenses(1)

(277,461

)

(686,100

)

(1,184

)

(964,745

)

Direct expenses(2)

(8,672,907

)

(11,064,098

)

(863,563

)

(20,600,568

)

Segment operating income (loss)

$

1,241,446

$

(493,319

)

$

(864,747

)

$

(116,620

)

Financial income (expense)

(24,602

)

(27,601

)

(162,984

)

(215,187

)

Income tax expense

(35,000

)

816

(228,636

)

(262,820

)

Income (loss) from continuing operations

$

1,181,844

$

(520,104

)

$

(1,256,367

)

$

(594,627

)

Three months ended June 30, 2016

Revenues from outside customers

$

11,346,295

$

10,433,582

$

–

$

21,779,877

Depreciation, amortization and impairment expenses(1)

(276,367

)

(874,491

)

(8,770

)

(1,159,628

)

Direct expenses(2)

(9,494,982

)

(9,664,106

)

(1,457,244

)

(20,616,332

)

Segment operating income (loss)

$

1,574,946

$

(105,015

)

$

(1,466,014

)

$

3,917

Financial income (expense)

(3,750

)

(5,973

)

(194,473

)

(204,196

)

Income tax expense

(30,830

)

(109,361

)

(228,636

)

(368,827

)

Income (loss) from continuing operations

$

1,540,366

$

(220,349

)

$

(1,889,123

)

$

(569,106

)

(1)

Includes depreciation of property and equipment and amortization expenses of intangible assets.

(2)

Including, inter alia, sales and marketing, general and administrative.

(3)

Out of those amounts, goodwill in the Company’s Training and Simulation and Power Systems Divisions totaled $24,435,641 and $21,647,674, respectively, as of June 30, 2017 and $24,435,641 and $21,052,329, respectively, as of June 30, 2016.

(4)

Cash balances previously reporting in the Training and Simulation Division in 2016 are now reported in Corporate in 2017.

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.